DMV and Lemon Law
A vehicle that has been reacquired by the manufacturer because of specified warranty defects on or after January 1, 1996, is known as a lemon law buyback vehicle.
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Manufacturer Requirements
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When reacquiring a vehicle because of warranty defects, the manufacturer must request the Certificate of Title and Registration Certificate be marked "Lemon Law Buyback." The title must also be transferred to the manufacturer's name, according to the California Department of Motor Vehicles (DMV). The manufacturer must attach a decal that reads "Lemon Law Buyback" to the vehicle.
Determining a Lemon Law Buyback Vehicle
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You can determine if a vehicle is a lemon law buyback vehicle by checking for the manufacturer decal. You may also inspect the vehicle's Certificate of Title and Registration, according to DMV.
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Purchaser Requirements
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The purchaser of a lemon law buyback vehicle must have the Certificate of Title properly endorsed for transfer. The purchaser must also pay a transfer fee and any applicable sales or use taxes, according to DMV. A smog certificate and an odometer disclosure statement may also be required.
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References
- Photo Credit automobile 2 image by thierry planche from Fotolia.com